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George W. Cody (WSBA No. 6582, admitted 1976), of Lynnwood, was disbarred effective May 29, 2002, following a stipulation to discipline approved by the Supreme Court. Mr. Cody stipulated that these facts would likely be proven at a hearing. This discipline is based on his theft of client funds in 2000 and 2001.
Matter 1: In September 2000, Mr. Cody agreed to represent the husband in a marital dissolution action. During the case, the parties sold their home. Mr. Cody agreed to hold the sale proceeds in this trust account until the parties’ settled the property issues. In February 2001, Mr. Cody received the clients’ $175,037. By February 2001, Mr. Cody had spent $40,000 of the parties’ money for his own purposes. In March 2001, the court issued an order freezing the funds. Later, the court ordered Mr. Cody to repay $40,000 and transfer the remaining funds to the client’s new lawyer.
Matter 2: In May 1991, Mr. Cody agreed to represent three clients in a lawsuit. The clients signed a written contingent fee agreement providing a 25% fee for settlement prior to trial. The parties settled the suit prior to trial for $25,000. By 1996, Mr. Cody had used all but $506.54 of the clients’ money for his own purposes. Mr. Cody suggested that the clients leave their money with him until the statute of limitations on any attorney’s fee claim from opposing counsel expired. In June 2000, Mr. Cody told the clients that their account balance was $26,376. In August and October 2000, the clients provided Mr. Cody with written disbursement instructions, but Mr. Cody did not disburse their money. He provided them with false bank statements. In January 2001, Mr. Cody gave two of the clients a cashier’s check for $23,002.from one trust account. Later that same day, Mr. Cody gave the clients the $554 remaining in the initial trust account. Also on this same day, Mr. Cody issued a $4,000 check to the third client from a third trust account.
Mr. Cody’s conduct violated RPC 8.4(b), prohibiting committing a criminal act that reflects adversely on a lawyer’s honesty, trustworthiness, or fitness as a lawyer in other respects; RPC 8.4(c), prohibiting conduct involving dishonesty, fraud, deceit and misrepresentation; 1.14(a), requiring lawyers to deposit and maintain client funds in a trust account; 1.14(b)(3), requiring lawyers to maintain complete and accurate records of client funds and render appropriate accountings.
Marsha Matsumoto represented the Bar Association. David Allen represented Mr. Cody.
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